The liquidity provider licenses used to be a closed shop at NYSE Liffe. Once a firm was “primary market maker”, quoting all available options in a certain class, they usually could hold on their quoting position forever. These quoting licenses were limited, usually only 3 for smaller stocks to around 5 for the bigger onesRead more
The alternative options exchange TOM is gaining speed. Last thursday the ten millionth option contract traded and market share climbed to 28% percent of the combined Euronext / TOM volume. However, it’s striking both exchanges agreed on ignoring the big elephant in the room. Increasing market share First, the good news. Over time, clients ofRead more
Just a couple of months ago we’ve been making fun of Timber Hill. A few Norwegian retail investors fooled the sophisticated automatic trading software and made a few bucks along the way. Both vikings, Svend Egil Larsen and Peder Veiby, were sentenced to suspended jail terms last October. Story isn’t over yet, as they will appealRead more
Last post I mentioned a new Dutch community site for retail investors. It’s looking allright but is still seriously lacking critical mass. Anyway, the site is launched by online broker Binck/Alex and although they are evolving into a straight competitor of Euronext’s stock trading platform – the relationship between them is fine. In this columnRead more
Norwegians and high frequency firms take advantage of Timber Hill. The largest market maker by turn-over volume in options on Euronext is probably the technological driven Timber Hill. It’s part of NASDAQ listed Interactive Brokers. Timber Hill is quoting everything and everywhere, using a linked global trading system. One single trader/mechanic is responsible for quoting allRead more
